Mineral Resources Minister Susan Shabangu might consider a request today to intervene in the proposed sale of De Beers’ Namaqualand mine to Trans Hex and other parties, Shabangu’s spokesman Musa Zondi said this week.
In a letter to Shabangu last week, Conservation SA asked for detailed information on the proposed transfer of mining rights as well as details of a downgrade to the estimated costs of closing the mine.
Zondi said Shabangu would attend to the matter today at the earliest.
When the R225 million deal was announced earlier this month, the buyers were identified as Trans Hex with a 50 percent stake, JSE-listed investment holding company RECM and Calibre (34 percent), Trans Hex management grouped under Dinoka Investment Holdings (11 percent) and unidentified broad-based black economic empowerment partners (5 percent).
Conservation SA has alleged that De Beers failed to consult key stakeholders, including land claimants, and would compromise the West Coast ecology by opting for a consortium led by Trans Hex, which is accused of making “no real attempt” at rehabilitation at its other Namaqualand operations.
Trans Hex indicated its bid was chosen by De Beers after a rigorous process that considered access to funding, technical capability, commitment to the Namaqualand region and broad-based empowerment.
However, Conservation SA said the shareholder model for the proposed deal with Trans Hex left only 5 percent for the previously disadvantaged, and the precise nature had yet to be determined. On the other hand, other bidders tried to involve local communities, including one that spent months setting up formal structures for a 50 percent community shareholding.
De Beers has previously said it had received several binding offers since initiating the sales process last year.
Conservation SA said De Beers had ignored its advice to appoint an external and independent review panel to assess the social commitments and restoration track records of potential buyers, which it claimed was “common practice among mining companies”.
De Beers spokesman Tom Tweedy said it had a “series of criteria (for the sale), which we’ve discussed with Conservation SA over the months”.
However, Conservation SA’s Namaqualand programme manager Ronald Newman said: “We’ve sent a lot of letters to De Beers and they’ve just ignored us. They come back and say they will discuss it, but nothing has happened.”
Alleging that De Beers “worked hard” to keep secret a recent revision of rehabilitation costs for the 86-year-old mine, Conservation SA has now asked Shabangu for an independent audit of the financial provisions in the draft revised environmental management plan, detailed information on Trans Hex’s ability to comply with rehabilitation obligations, as well as an opportunity to comment.
Conservation SA director Sarah Frazee said it was “disappointing” that De Beers was flouting its own corporate policies and trends among modern mining firms towards greater openness and sustainability.
Tweedy denied the sale had become a reputational issue for De Beers. “It’s not the first and foremost issue. The reputational issue is not an issue.” - Business Report